“If you like Apple (AAPL), consider having some patience here and making a buy at the end of the day on Friday, January 18th, 2013,” Joe Springer writes for SeekingAlpha.
Springer writes:
The reason?
• Apple had an enormous amount of call options speculation related to its summer surge
• A huge share of this was calls with a strike of around the current price of $550 and higher that expire January 19, 2013
• The institutional money managers that wrote those call options and bought common stock to cover will make a lot of money if a) those options expire worthless, and then b) Apple runs after that expiration date
Apple is getting a lot of buzz for being undervalued here, but there is an enormous amount of pressure on the price at these levels that will be lifted after options expiration.
Read more in the full article here.
[Thanks to MacDailyNews Readers “Dan K.” and “blaargh” for the heads up.]
Yet another convenient excuse for the relentless nosediving of AAPL to raise retail investors’ false hope to keep them holding the price up while big boys jump ship.
Meanwhile, another ugly close is coming which portends more pains on the way. $440 – 460 is in the card for Friday. As I was saying, Apple is in turmoil, and until Cook can successfully address the three company fundamental problems, the stock has no where to go but down.
Let’s hope he and his sidekick Oppenheimer begin to at least acknowledge the problems on the 23rd for the sake of retail investors.
Hey Whine-chester.
Enlighten us on Apple’s three “fundamental problems” will you?
Seems to me it’s not Apple that’s in turmoil. Anyone with any objectivity sees a war against Apple stock currently.
You, sir, are a tool.
+1
I don’t think Winnie is whining Ta Ta Ta. I think he is simply exercising his right to have an opinion. That doesn’t go over too well on this site. That’s too bad. I don’t think Winnie is correct. I think we have reached a bottom at least for now. I see upside coming. But hey, that’s just my opinion. And I’m damn well going to express it whether anyone likes it or not. I think you’re wrong too Ta. There’s no war against Apple. Don’t be silly. Look at all the stocks that went down today, is there a war against each of them? Of course not. Expand your horizons and follow other Companies. The whole fucking world isn’t out there to get Apple. Jeez! Apple just has competition. Apple was over bought. Everybody with no clue was buying Apple without evaluating the company properly. The stock ran up higher than it should have. Fiscal cliff, mutual fund rebalancing and intelligent people taking their profit brought the share price down to where it is now. Now it is oversold Ta. So jump back in but be careful doing so. Don’t go all in. This will not be the apple of old. It cannot grow by 40% per year. That’s just impossible. Beware of suckers rallies too. Don’t concentrate solely on P/E and cash on hand. Many companies have a good P/E and cash on hand but fail to move the needle much each year. Apple is a great company and hopefully will do good going forward. But it’s no guarantee. Just because you like their stuff doesn’t mean that they will be successful going forward. Invest with your head not with your emotions. Never make excuses for a company that you invest in. Apple isn’t your best buddy. Hopefully you have a best buddy Ta. Realize that it’s the stock market, it doesn’t have to be fair for you every day. Never fall in love with an investment. Learn to take profit, don’t be greedy.
His original article was written in November. Since then, the stock has reacted pretty much exactly as he predicted. He makes much more sense than you do. Apple’s “problem” is the same one Walter White has… what do I do with this mountain of cash people keep throwing at me?
Already aapl is up 3.5% today. I hope you shorted at 492.
There are going to be a lot of sad money managers if they can’t figure out how to FUD the stock for a couple more days…
Apple has problems. iOS is stale and needs a refresh; not the software per se, but the UI. the icons will have to be bigger and interactive for these changes to be effective. Too many tiny icons, most sitting there doing nothing.
They need to reduce their prices; not by a lot, but maybe 10-15% in order to become what they are becoming even if they dont like it – a consumer company that everyone wants a piece of. No, it isnt the Apple that we once knew, but nothing, NOTHING, stays the same.
They need to find a visionary to assist Cook – he’s a nice guy, but he isn’t passionate or driven – he’s safe and comfortable.
3 good points here. iOS does need to evolve into new UI territory. Now that Forstall is gone we might see that. You don’t have to be radical, just an evolving UI that shows that Apple has a idea of where it’s going.
Prices. Oh prices. I’ve bought Mac’s all my life, and paid the premium, but even I gave a WTF on the new iMac. The entry level is more expensive, but you get less (i.e. no DVD drive). People can argue that ‘nobody uses them’, and they’re right, but it’s the perception that matters. I agree 10-15% would be a wise move, spread over time so as not to scare the horses.
Cook. I’ve given him a chance but he’s not the right guy. SJ said that putting the Sales guy in charge of the company is a mistake – is not putting the finance guy in charge just as bad?
We need a visionary if Apple’s going to be any where near what it was. If that’s not possible, or the person doesn’t exist, and they put ‘just another guy’ in charge, they need to get used to being perceived as ‘just another computer company’.
I agree. But don’t forget that there ist Jony. SJ put him in place to be the visionary. We tend to forget this because Jony likes to keep himself in the background.
Apart from that, Apple is still on the forefront of a huge trend, the trend to mobile internet. Apple is still growing. Never mind if the company is growing less than Samsung. So everybody relax please. We have seen periods of FUD and incertainity before, also when SJ was leading the company. Apple has potential. It is clear though that at this height it can’t grow as fast as it used to.
Tim Cook was/is not “the finance guy.” He was COO. The best one on the planet, by the way.
Tim Cook was/is “the operations guy.”
+1
I keep reading that Apple needs to revamp the Springboard UI to remain relevant. While I’d like to see a new coat of paint as much as anyone, that’s all it would be: a new coat of paint. I spent about 5% of my time interacting with the OS UI when using my iDevices. All the real time is spent using apps.
IMHO, the areas that apple should work on are:
1) Making access to device settings quicker and more convenient,
2) Figuring out how to reduce screen real estate used by controls in apps so there is more room for content,
3) Making inter-application data sharing easier and more convenient.
4) Making SIRI faster, better at parsing queries, and more capable (including third party app integration), and
5) As with SIRI, improve query handling in Maps.
And why exactly do the icons have to be bigger? I take it that you are an acknowledged UI expert. I’m waiting.
Second, when you compete on price, it’s a tacit admission that your product is a mere commodity without any discernible advantages over your competition. When you compete on price, you become Michael Dell, who, last I checked, is bailing out of the consumer end of PCs and moving his company to the private side because he can’t compete.
Apple doesn’t work that way.
We all have our opinions, but that doesn’t necessarily mean we know what the hell is going on or what we’re talking about. Cook is going to be the target no matter what, obviously. Why has there been an exodus of people retiring, leaving, or being fired? is this normal- Microsoft has its own game of musical chairs going on. I also don’t pay attention to rumours- but certainly not the stock market. Capitalism sucks. It’s better than most alternatives, but it’s very, very flawed.
The King of Wishful Thinking
One of the dumdum phrases going around the financial community is:
‘Buy before the announcement. Sell on the announcement.’
Watch Apple turn the financial community ON-ITS-HEAD yet again. Thieves and fools destroy only themselves.
I thought gambling was illegal in most states and locales?